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This section encourages taxpayers to donate to qualified funds and approved charitable institutions, offering tax deduction on monetary values on donation. All assessees are eligible for this deduction, subject to them providing proof of payment, provided payment has been made by way of other than CASH.
Note: Quantum of Deduction: 100% or 50% of eligible donations. In some cases, the maximum allowable deduction is 10% of Adjusted Gross Total Income.
Finance Act 2017 amended section 80G so as to provide that no deduction shall be allowed under the section 80G in respect of donation of any sum exceeding Rs. 2,000/- unless such sum is paid by any mode other than cash. Earlier this limit was 10, 000/-. The Government has taken this step-in order to provide cashless economy and transparency.
Section 80GG
Only individual assessee who do not receive house rent allowance (HRA), are eligible for this deduction on the rent paid by them in excess of 10% of adjusted total income or subject to a maximum deduction equivalent to 25% of their total income or Rs 5,000 per month.
Section 80GGA
Tax deductions under this section can be availed by all assessees, subject to them not having any income through profit or gain from a business or profession (PGBP). Donations by such assessee to enhance social/scientific/statistical research or towards the National Urban Poverty Eradication Fund are eligible for tax benefits.
Section 80GGB
Tax deductions under this section can be availed by Indian Companies only, with the amount donated by them to a political party or electoral trust qualifying for deductions.
Section 80GGC
Under this section, funds donated/contributed by an assessee (Individuals/HUF) to a political party or electoral trust are eligible for deduction.
Section 80TTA
Deduction under section 80TTA can be claimed by Individuals or HUF to the tune of Rs. 10,000 every year on the interest earned on saving bank account.